GOVERNMENT  OF  MAHARASHTRA

LAW AND JUDICIARY DEPARTMENT

MAHARASHTRA  ACT  No. VIII OF 2014.

THE MAHARASHTRA MONEY-LENDING
(REGULATION) ACT, 2014.

(As modified upto the 12th May 2015)

PRINTED IN INDIA BY THE MANAGER GOVERNMENT CENTRAL PRESS, MUMBAI AND
PUBLISHED BY THE DIRECTOR, GOVERNMENT PRINTING, STATIONERY AND PUBLICATION,
MAHARASHTRA STATE, MUMBAI 400 004.

2015

[ Price : Rs. 25-00 ]

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Maharashtra Money-Lending (Regulation) Act, 2014.

[2014 : Mah. VIII

(i)

2014 : Mah. VIII]

Maharashtra Money-Lending (Regulation) Act, 2014.

(i)
3

2014 : Mah. VIII]

THE  MAHARASHTRA  MONEY-LENDING
(REGULATION) ACT,  2014.
———————
CONTENTS

PREAMBLE.

SECTIONS.

1. Short  title,  extent  and  commencement.

2. Definitions.

3. Appointment  of  Registrar  General  and  other  officers

to assist him.

4. Money-lender not to carry on business of money-lending
except  for  area  under  licence  and  except  in  accordance
with  terms  of  licence.

5. Application  for  licence.

6. Grant  of  licence  and  entry  in  register.

7. Register  of  money-lenders.

8. Refusal  of  issue  of  licence.

9. Revisionary  powers  of  Registrar  General.

10. Term  of  licence.

11. District  Registrar’s  power  to  cancel  licence.

12. Levy  of  inspection  fee.

13. Suits  by  money-lenders  not  holding  licence.

14. Application  for  cancellatoin  of  licence.

15. Registrar General and his subordinates to have powers

of  Civil  Court.

16. Power  of  authorized  officer  to  require  production  of

records  of    documents.

17. Disposal of property pledged with money-lender carrying
on  business  of  money-lending  without  valid  licence.

18. Return  of  immovable  property  acquired  in  course  of

money-lending.

H 4192—1

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Maharashtra Money-Lending (Regulation) Act, 2014.

[2014 : Mah. VIII

SECTIONS.

19. Court’s  power  to  cancel  or  suspend  licence.

20. No  compensation  for  suspension  or  cancellation

of  licence.

21. Persons  debarred  from  doing  money-lending  during

period  of    suspension  or  cancellation  of  licence.

22. Person  whose  licence  is  suspended  or  cancelled  not
to  apply  without  giving  particulars  of  endorsement  or
of  disqualification.

23. Promissory note,  Bond, etc., to  be factual.

24. Duty  of  money-lender  to  keep  acconuts  and  furnish

copies.

25. Delivery  of  statement  of  accounts  and  copies  there  of

by  money-lenders.

26. Fees  for  certain  statements  supplied  to  debtors  and

Assistant  Registrar.

27. Debtor  not  bound  to  admit  correctness  of  accounts.

28. Procedure  of  Court  in  suit  regarding  loans.

29. Power  of  Court  limit  interest  recoverable  in  certain

cases.

30. Power of Court to direct payment of decretal amount by

installment.

31. Limitation  on  rates  of  interest.

32. Prohibition  of  charge  for  expenses  on  loans  by

moneylenders.

33. Assignment  of  loans.

34. Application  of  Act  as  to  assignees.

35. Re-opening  of  transactions.

36.

Inquiry for taking accounts and declaring amount due.

37. Deposit  in  Court  of  money  due  to  money-lenders.

38. Calculation  of  interest.

39. Penalty  for  doing  money-lending  without  valid  licence.

40. Penalty for making  false statement.

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Maharashtra Money-Lending (Regulation) Act, 2014.

(iii)
5

SECTIONS.

41. Obtaining  licence  under  fictitious  name,  carrying  on
money-lending  at a  place  not  mentioned in  licence,  etc.

42. Penalty  for  wrong  entry  in  promissory  note,  Bond,  etc.

43. Penalty for contravention of section 24 or 25.

44. Penalty for charging rate of interest in contravention of

section  31.

45. Penalty  for  molestation.

46. General  provisions  regarding  penalties.

47. Offences  by  corporations,  etc.

48. Certain  offences  to  be  cognizable.

49. No  arrest  and  imprisonment  in  execution  of  decree  for

money  against  agricultural  debtors.

50. Every  officer  to  be  public  servant.

51. Protection  of  action  taken  in  good  faith.

52. Provision of XXVIII of 1947 saved.

53. Power  of  State  Government  to  delegate  its  powers.

54. Rules.

55. Power  to  remove  difficult.

56. Repeal of Bom. XXXI of 1947 and saving.

57. Repeal of Mah. Ord. I of 2014 and saving.

H  4192—1a

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Maharashtra Money-Lending (Regulation) Act, 2014.

1

MAHARASHTRA ACT No. VIII OF 20141.
[THE MAHARASHTRA MONEY-LENDING (REGULATION)
ACT, 2014.]
(This  Act  received  the  assent  of  the  President  on  the  2nd
April  2014;  assent  first  published  in  the  Maharashtra
Government Gazette, Part IV, on the 4th April 2014.)

Amended by Mah. 23 of 2014 (25.06.2014) †

An Act to regulate the transactions of money-lending in
the State of Maharashtra.

WHEREAS the harassment at the hands of money-lenders had
been increased in the State resulting into the frequent suicides by
farmers ;

AND WHEREAS the then existing enactment on money-
lending was found to be inadequate to protect the farmers-
debtors  and  to  prevent  them  from  the  harassment  by  the
money-lenders  ;

AND  WHEREAS  under  the  circumstances  it  became
absolutely  necessary  for  the  Government  to  take  appropriate
and  stringent  social  and  legal  measures  to  effectively  prevent
the  harassment  to  the  farmers-debtors  at  the  hands  of  the
money-lenders  ;  it  was  expedient  to  make  a  new  law  having
better provisions for the regulation and control of transactions
of money-lending in the State of Maharashtra ;

AND  WHEREAS  both  Houses  of  the  State  Legislature  were

not  in  session ;

AND WHEREAS the Governor of Maharashtra was satisfied
that circumstances existed which renderd it necessary for him
to  take  immediate  action  to  make  a  law,  for  the  purposes
aforesaid  ;  and,  therefore,  promulgated  the  Maharashtra
Money-Lending  (Regulation)  Ordinance,  2014,  on  the  16th
January 2014 ;

AND WHEREAS it is expedient to replace the said Ordinance
by an Act of the State Legislature; it is hereby enacted in the
Sixty-fifth  Year  of  the  Republic  of  India  as  follows :—

1.

(1) This  Act  may  be  called  the  Maharashtra  Money-

Lending  (Regulation)  Act,  2014.

1 For  Statement  of  Objects  and  Reasons  (in  English)  see  Maharashtra  Government
Gazette,  Part  V-A,  Extraordinary, No. 6, dated the 24th February 2014, page  21.

† This  indicates  the  date  of  commencement  of  the  Act.

Mah.
Ord.  I
of
2014.

Short  title,
extent  and
commencement.

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Maharashtra Money-Lending (Regulation) Act, 2014.

[2014 : Mah. VIII

(2) It extends to the whole of the State of Maharashtra.

(3) It  shall  be  deemed  to  have  come  into  force  on  the  16th

January 2014.

Definitions.

2.

In  this  Act,  unless  the  context  otherwise  requires,—

(1) “bank”  means  a  banking  company  or  a  co-operative
bank to which the Banking Regulation Act, 1949 applies and
includes,—

(a) the  State  Bank  of  India  constituted  under  the

State Bank of India Act, 1955 ;

(b) a subsidiary bank as defined in the State Bank of

India (Subsidiary Banks) Act, 1959 ;

(c) a  corresponding  new  bank  constituted  under  the
Banking  Companies  (Acquisition  and  Transfer  of
Undertakings)  Act,  1970,  or,  as  the  case  may  be,  under  the
Banking  Companies  (Acquisition  and  Transfer  of
Undertakings) Act, 1980 ; and

(d) any other banking institution referred to in section

51 of the Banking Regulation Act, 1949 ;

(2) “ banking company ” shall have the same meaning as
assigned  to  it  by  clause  (c)  of  section  5  of  the  Banking
Regulation Act, 1949 ;

(3)  “  business  of  money-lending  ”  means  the  business  of
advancing loans whether in cash or kind and whether or not
in  connection  with,  or  in  addition  to  any  other  business  ;

(4) “ capital ” means a sum of money which a money-lender

invests  in  the  business  of  money-lending  ;

(5)  “  company  ”  means  a  company  as  defined  in  the

Companies Act, 1956 or the Companies Act, 2013 ;

(6) “ Co-operative Bank”, “ co-operative society ”, “ multi-
state co-operative Bank ” and “ primary credit society ” shall
have the same meanings as assigned to them by clause (c) of
section 56 of the Banking Regulation Act, 1949 ;

(7)  “debtor”  means  a  person  to  whom  a  loan  is  advanced
whether in cash or kind and includes his successor in interest
or surety ;

10 of
1949.

23 of
1955.

38 of
1959.

5 of
1970.
40 of
1980.

10 of
1949.

10 of
1949.

1 of
1956.
18 of
2013.

10 of
1949.

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Maharashtra Money-Lending (Regulation) Act, 2014.

3

(8)  “  inspection  fee  ”  means  the  fee  leviable  under
section  12  in  respect  of  inspection  of  books  of  accounts  of
a  money-lender  ;

(9) “ interest ” includes any sum by whatsoever name
called,  in  excess  of  the  principal  paid  or  payable  to  a
money-lender  in  consideration  of,  or  otherwise  in  respect
of, a loan, but does not include any sum lawfully charged
by  a  money-lender  for,  or,  on  account  of  costs,  charges  or
expenses in accordance with the provisions of this Act, or
any other law for the time being in force ;

(10)  “  investment  in  business”  means  total  amount
invested, from time to time, in business of money-lending
by a money-lender ;

(11)  “  licence  ”  means  a  licence  granted  under  this

Act ;

(12) “ licence fee ” means the fee payable in respect of

a licence ;

(13) “ loan” means an advance at interest whether of

money  or  in  kind  but  does  not  include,—

(a)   a  deposit  of  money  or  other  property  in  a
Government Post Office bank or in any other bank or
in  a  company  or  co-operative  society  ;

(b) a loan to, or by, or a deposit with any society
or  association  registered  under  the  Societies
Registration  Act,  1860  or  any  other  enactment
relating  to  a  public,  religious  or  charitable  object  ;

(c) a loan advanced by the Government or by any

local  authority  authorized  by  the  Government  ;

(d) a loan advanced to a Government servant from
a  fund,  established  for  the  welfare  or  assistance  of
Government servants, and which is sanctioned by the
State  Government  ;

(e)  a  deposit  of  money  with,  or  a  loan  advanced

by,  a  co-operative  society  ;

(f)  an  advance  made  to  a  subscriber  to,  or  a
depositor,  in  a  provident  fund  from  the  amount
standing to his credit in the fund in accordance with
the rules of the fund ;

(g)  a  loan  to,  or  by,  an  insurance  company  as

defined in the Insurance Act, 1938 ;

21 of
1860.

4 of
1938.

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Maharashtra Money-Lending (Regulation) Act, 2014.

[2014 : Mah. VIII

(h) a loan to, or by, a bank ;

(i)  a  loan  to,  or  by,  or  deposit  with,  any
corporation (being a body not falling under any of the
other  provisions  of  this  clause),  established  by  or
under any law for the time being in force which grants
any loan or advance in pursuance of that Act ;

(j) an advance of any sum exceeding rupees 1[three
lakhs]  made  on  the  basis  of  a  negotiable  instrument
as  defined  in  the  Negotiable  Instruments  Act,  1881,
other than a promissory note ;

26 of
1881.

(k) an advance of any sum exceeding rupees three
thousand  made  on  the  basis  of  a  hundi  (written  in
English or any Indian language) ;

(l)  an  advance  made  bonafide  by  any  person
carrying  on  any  business,  not  having  for  its  primary
object the lending of money, if such advance is made
in the regular course of his business ;

(m)  except  for  the  purposes  of  sections  29  and

31,—

(i)  a  loan,  by  a  landlord  to  his  tenant  for
financing of crops or seasonal finance, of not more
than Rs. 1,000 per acre of land held by the tenant ;
(ii)  a  loan  advanced  to  an  agricultural

labourer  by  his  employer  ;

Explanation.—The  expression  “  tenant  ”  shall  have  the
meaning  assigned  to  it  in  the  Maharashtra  Tenancy  and
Agricultural  Lands  Act,  or  any  other  relevant  tenancy  law  in
force  relating  to  tenancy  of  agricultural  lands,  and  the
expressions “ financing of crops ” and “ seasonal finance ” shall
have  the  meanings  assigned  to  them  in  the  Maharashtra
Agricultural  Debtors’  Relief  Act  ;

LXVII
of
1948.

XXVIII
of
1947.

(14) “ money-lender ” means,—

(i) an individual ; or
(ii) an undivided Hindu family ; or
(iii) a  company  other  than  a  non  –  banking
financial company regulated under Chapter IIIB of the
Reserve Bank of India  Act, 1934 ;

2 of
1934.

1  These  words  were  substituted  for  the  words  “ three  thousand ”  by  Mah.  23  of

2014, s.2 (a).

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Maharashtra Money-Lending (Regulation) Act, 2014.

5

(iv) an  unincorporated  body  of  individuals,  who

or  which,—

(a) carries  on  the  business  of  money-lending

in the State ; or

(b) has  his  or  its  principal  place  of  such

business in the State;  and

includes  a  pawn-broker,  but  does  not

include,—

(i)

(ii)

Government  ;

a local authority ;

(iii) a Bank ;

(iv)

(v)

(vi)

a  Co-operative  Bank  ;

a  multi-state  Co-operative  Bank  ;

a Non- Banking Financial Company ;

(vii) a  primary  credit  society  ;

(viii) a Regional Rural Bank ;

(ix)

the Reserve Bank of India ;

(x)

(xi)

the Agricultural Refinance Corporation
constituted  under  the  Agricultural
Refinance  Corporation  Act,  1963  ;  or

any  other  banking  or 
financial
institution which the State Government
may,  by  notification  in  the  Official
Gazette specify in this behalf ;

(15)  “pawn-broker”  means  a  money-lender  who  in
ordinary  course  of  his  business  advances  a  loan  and  takes
goods in pawn as security for payment of such loan ;

(16) “prescribed ” means prescribed by rules made under

this Act ;

(17) “ principal ”, in relation to a loan, means the advance

actually made to a debtor whether in cash or in kind ;

(18) “ Regional Rural Bank ” means a bank established

under section 3 of the Regional Rural Banks Act, 1976 ;

1[(19) “recognized language ” means Marathi, Gujarati,
Hindi or any other language recognized by the Government ;]

1 Clause (19) was substituted by Mah. 23 of 2014, s.2 (b).

H  4192—2

10 of
1963.

21 of
1976.

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Maharashtra Money-Lending (Regulation) Act, 2014.

[2014 : Mah. VIII

(20) “  register  ”  means  a  register  of  money-lenders

maintained  under  section  7  ;

(21) “ Registrar General ” means the Registrar General

of  Money-Lending  appointed  under  section  3  ;

(22) “ rules ” means the rules made under this Act ;

(23) “ State ” means the State of Maharashtra ;

(24) “ suit to which this Act applies ” means any suit
between  a  money-lender  and  a  debtor  or  his  successor
arising out of a loan advanced whether before or after the
commencement  of  this  Act ;

(25)  “  trader  ”  means  a  person  who  in  the  regular
course of business buys and sells goods or other property,
whether  movable  or  immovable,  and  includes,—

(i)

a  wholesale  or  retail  merchant,

(ii) a  commission  agent,

(iii) a  broker,

(iv) a  manufacturer,

(v) a  contractor,

(vi) a  factory  owner,

but  does  not  include  an  artisan  or  a  person  who  sells  his
agricultural  produce  or  cattle  or  buys  agricultural  produce  or
cattle  for  his  use.

Explanation.—For  the  purposes  of  this  clause,  an
“artisan”  means  a  person  who  does  not  employ  more  than
ten  workers  in  a  manufacturing  process  on  any  one  day  of
the  twelve  months  immediately  preceding.

Appointment
of  Registrar
General
and  other
officers  to
assist him.

3.

(1) The  State  Government  may,  by  notification  in
the  Official  Gazette,  appoint  the  Registrar  General  of
Money-Lending  and  such  number  of  Divisional  Registrars,
District Registrars and Assistant Registrars as it thinks proper.

(2) The  Registrar  General  shall  have  jurisdiction
throughout  the  State.  The  Divisional  Registrar  shall  have
jurisdiction  throughout  his  division,  the  District  Registrar
shall have jurisdiction throughout his District and the Assistant
Registrar  shall  have  jurisdiction,  in  such  area  of  the  District
as  the  State  Government  may,  by  order,  specify.  The
Divisional  Registrar  shall  be  subordinate  to  the  Registrar

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Maharashtra Money-Lending (Regulation) Act, 2014.

7

Money- lender
not to carry on
business  of
money-lending
except for area
under  licence
and  except  in
a c c o r d a n c e
with  terms  of
liecnce.

Application
for  licence.

General,  the  District  Registrar  shall  be  subordinate  to  the
Divisional  Registrar  and  the  Assistant  Registrar  shall  be
subordinate  to  the  District  Registrar.

4. No  money-lender  shall  carry  on  the  business  of
money-lending  except  in  the  area  for  which  he  has  been
granted  a  licence  and  except  in  accordance  with  the  terms
and  conditions  of  such  licence.

5.

(1) Every  money-lender  shall  annually,  before  such
date  as  may  be  prescribed,  make  an  application  in  the
prescribed  form  for  the  grant  of  licence  to  the  Assistant
Registrar  of  the  area  within  the  limits  of  which,  the  place
where  he  carries  on  or  intends  to  carry  on  the  business  of
money-lending is situated. When he carries on or intends to
carry  on  such  business  at  more  than  one  place,  a  separate
application  in  respect  of  each  such  place  shall  be  made  to
such Assistant Registrar. Such application shall contain the
following  particulars,  namely  :—

(a) the true name in which such money-lender intends
to  carry  on  business  and  the  true  name  of  the  person
propose to be responsible for the management of the same ;

(b) if the application is by or on behalf of,—

(i)   an  individual,  the  true  name  and  address  of

such  individual;

(ii) an undivided Hindu family, the true names and
addresses  of  the  manager  and  the  adult  coparceners
of such family ;

(iii) a  company,  the  true  names  and  addresses  of
the directors, managers or principal officer managing
it ;

(iv) an unincorporated body of individuals, the true

names  and  addresses  of  such  individuals ;
(c)  the  area  and  the  place  or  principal  place  of  the

business of money- lending in the State ;

(d)  the  name  of  any  other  place  in  the  State  where
the  business  of  money-lending  is  intended  to  be  carried
on ;

H  4192—2a

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Maharashtra Money-Lending (Regulation) Act, 2014.

[2014 : Mah. VIII

(e)  whether  the  person  signing  the  application  has
himself  or  any  of  the  adult  coparceners  of  an  undivided
Hindu family, or any director, manager or principal officer
of the company or any member of the unincorporated body
on behalf of which such application has been made, as the
case may be, has carried on the business of money-lending
in  the  State  in  the  year  ending  on  the  31st  day  of  March
immediately  preceding  the  date  of  application  either
individually,  or  in  partnership,  or  jointly  with  any  other
coparcener  or  any  other  person  and  whether  in  the  same
name or any other name ;

(f) the  total  amount  which  such  person  intends  to
invest  in  the  business  of  money-lending  in  the  year  for
which  the  application  has  been  made  ;

(g) if the places at which the business of money-lending
is  to  be  carried  on  are  more  than  one,  the  true  names  of
persons  who  shall  be  in  the  management  of  business  at
each  such  place.
(2)  The  application  shall  be  in  writing  and  shall  be

signed,—

(a)  (i)  if  the  application  is  made  by  an  individual,  by

the  individual;

(ii) if  the  application  is  made  on  behalf  of  an
undivided Hindu family, by the manager of such family ;
(iii)  if  the  application  is  made  by  a  company  or
unincorporated  body,  by  the  managing  director  or  any
other  person  having  control  of  its  principal  place  of
business;

(b) by  an  agent  authorized  in  this  behalf  by  a  power
of attorney by the individual money-lender himself, or the
family or the company or the unincorporated body, as the
case may be.
(3)  The  application  shall  also  contain  such  other

particulars  as  may  be  prescribed.

(4)  Every  application  shall  be  accompanied  by  the

prescribed  licence  fee.

(5) The fee payable under this section shall be paid in the
manner prescribed and shall not be refunded, notwithstanding
the  fact  that  the  application  is  withdrawn  or  subsequently
rejected.

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Maharashtra Money-Lending (Regulation) Act, 2014.

9

6. On  receipt  of  an  application  under  section  5,  the
Assistant  Registrar  shall  make  necessary  enquiry  to  satisfy
himself  about  the  bonafides  and  conduct  of  the  applicant  and
shall  forward  the  application  together  with  his  report,  to  the
District  Registrar.  Subject  to  the  provisions  of  this  Act,  the
District  Registrar  may,  after  making  such  further  inquiry,  if
any, as he deems fit, grant the applicant a licence in such form
and subject to such conditions as may be prescribed, and direct
the Assistant Registrar to enter the name of such applicant in
the register maintained by him under section 7 :

Grant  of
licence  and
entry  in
register.

Provided  that,  the  District  Registrar  shall  grant  such
licence in the Scheduled Areas, 1[after recommendation by] the
Gram Sabha and the Panchayat concerned, and where the area
of licence extends to more than one Gram Sabha or Panchayat,
then  all  the  concerned  Gram  Sabhas  and  Panchayat  Samitis
within  whose  area  of  jurisdiction  the  money-lender  carries  or
intends  to  carry  on  the  business  of  money-lending  :

Provided  further  that,  the  decision  taken  by  majority  of
the  Gram  Sabhas  concerned  by  passing  a  resolution  in  any  of
the above matters shall be binding on the concerned Panchayat
Samiti.

Explanation.—  For  the  purposes  of  this  section,—

(i) the expressions “Gram Sabha”, “ Panchayat ” and
“  Scheduled  Areas  ”  shall  have  the  meanings,  respectively,
assigned to them in the Maharashtra Village Panchayats Act;

(ii) the  expression  “  Panchayat  Samiti  ”  shall  have
the  meaning  assigned  to  it  in  the  Maharashtra  Zilla
Parishads and the Panchayat Samitis Act, 1961.

III of
1959.

Mah.
V  of
1962.

7. Every Assistant Registrar shall maintain, for the area
of his jurisdiction, a register of money-lenders in such form as
may  be  prescribed  :

Register 
of
money-lenders.

2 [Provided that, in the Scheduled Areas, the register shall

be  maintained  at  the  level  of  Gram  Panchayat.]

1. These words were substituted for the words “after consultation with” by Mah. 23

of 2014, s.3.

2.  This proviso was added, ibid., s.4.

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Maharashtra Money-Lending (Regulation) Act, 2014.

[2014 : Mah. VIII

Refusal  of
issue  of
licence.

8.

(1) The  grant  of  a  licence  shall  not  be  refused  except

on  any  of  the  following  grounds :—

(a) that  the  applicant,  or  any  person  responsible  or
proposed to be responsible for the management of his business
as  a  money-lender  is  disqualified  from  holding  a  licence ;

(b) that  the  applicant  has  not  complied  with  the
provisions  of  this  Act  or  the  rules  in  respect  of  an  application
for the grant of a licence ;

(c) that  the  applicant  has  made  willful  default  in
complying  with  or  knowingly  acted  in  contravention  of  any
requirement  of  this  Act ;

(d) that satisfactory evidence has been produced before
the  District  Registrar  that  the  applicant  or  any  person
responsible or proposed to be responsible for the management
of  the  business  of  money-lending  has,—

(i) knowingly participated in or connived at any fraud
or  dishonesty  in  the  conduct  of  or  in  connection  with  the
business  of  money-lending  ;  or

(ii) been  found  guilty  of  an  offence  under  Chapter
XVII or sections 465, 477 or 477-A of Chapter XVIII of the
Indian    Penal  Code.

45 of
1860.

(2) The  District  Registrar  shall,  before  refusing  a  licence
under  sub-section  (1),  give  to  the  applicant  a  reasonable
opportunity  of  producing  evidence,  if  any,  in  support  of  the
application  and  of  showing  cause  why  the  licence  should  not
be  refused ;  and  record  the  evidence  adduced  before  him  and
his  reasons  for  such  refusal.

(3) An  appeal  shall  lie  from  the  decision  of  the  District
Registrar  refusing  a  licence  under  sub-section  (1),  to  the
Divisional  Registrar,  whose  decision  thereon  shall  be  final.

(4) An appeal against the decision of the District Registrar
under  sub-section  (1)  may  be  filed  within  three  months  from
the  date  of  the  decision:

Provided  that,  the  Divisional  Registrar  may,  for  reasons
to be recorded, entertain the appeal after the expiry of a period
of  three  months  from  the  date  of  decision  of  the  District
Registrar  under  sub-section  (1),  if  he  is  satisfied  that  the
appellant  was  prevented,  for  the  reasons  beyond  his  control,
from  filing  the  appeal  within  a  period  of  three  months.

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Maharashtra Money-Lending (Regulation) Act, 2014.

11

Revisionary
powers  of
Registrar
General.

9. The  Registrar  General  may,  suo  motu  or  on  an
application,  call  for  and  examine  the  record  of  any  enquiry  or
proceedings of any matter where the order has been passed or
decision  has  been  given  by  an  officer  subordinate  to  him,  and
no  appeal  lies  against  such  decision  or  order  for  the  purpose
of  satisfying  himself  as  to  the  legality  and  propriety  of  the
decision  or  order  and  as  to  the  regularity  of  the  proceedings.
If  during  the  course  of  such  inquiry,  the  Registrar  General  is
satisfied  that  the  decision  or  order  so  called  for  should  be
modified,  annulled  or  reversed,  he  may,  after  giving  a  person
likely  to  be  affected  thereby  an  opportunity  of  being  heard,
pass such order thereon as he may seem just.

10. A  licence  shall  be  valid  from  the  date  on  which  it  is

granted to the 31st day of March following :

Term  of
licence.

Provided that, where an application for renewal of licence
has  been  received  by  the  Assistant  Registrar  within  the
prescribed  period,  the  licence  shall,  until  the  application  is
finally  disposed  of,  be  deemed  to  be  valid.

11.

(1) The  District  Registrar  may,  during  the  term  of
any licence, cancel the same by an order in writing on the ground
that the person to whom it was granted has been guilty of any
act or conduct for which he might, under section 8, have refused
him the grant of the licence and which act or conduct was not
brought to his notice at the time of the grant.

District
Registrar’s
power  to
cancel
licence.

(2) Before  cancelling  a  licence  under  sub-section  (1),  the
District  Registrar  shall  give  notice  in  writing  to  the  licencee
and may hold such inquiry as may be necessary.

(3) An  appeal  shall  lie  from  an  order  of  the  District
Registrar  cancelling  a  licence  under  sub-section  (1),  to  the
Divisional  Registrar  whose  decision  thereon  shall  be  final.

(4) An  appeal  against  the  order  of  the  District  Registrar
under  sub-section  (1)  may  be  filed  within  three  months  from
the  date  of  the  order :

Provided  that,  the  Divisional  Registrar  may,  for  the
reasons  to  be  recorded,  entertain  the  appeal  after  the  expiry
of the period of three months from the date of the order of the
District  Registrar  under  sub-section  (1),  if  he  is  satisfied  that
the  appellant  was  prohibited,  for  the  reasons  beyond  his
control,  from  filing  the  appeal  within  the  period  of  three
months.

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Maharashtra Money-Lending (Regulation) Act, 2014.

[2014 : Mah. VIII

Levy  of
inspection
fee.

Suits  by
money-
lenders  not
holding
licence.

Application
for
cancellation
of  licence.

12.

(1) An inspection fee shall, in addition to the licence
fee  leviable  under  section  5,  be  levied  on  a  money-lender
applying for a renewal of a licence at the rate of one per cent.
of  the  maximum  capital  utilized  by  him  during  the  period  of
licence  sought  to  be  renewed  or  1[fifty  thousand  rupees,
whichever  is  less].

(2) An  application  for  renewal  of  a  licence  shall  not  be
allowed unless the inspection fees under sub-section (1) is paid.
Explanation.—For the purposes of this section, “ maximum
capital”  means  the  highest  total  amount  of  the  capital  sum
which  may  remain  invested  in  the  money-lending  business  on
any  day  during  the  period  of  licence.

13.

(1) No court shall pass a decree in favour of a money-
lender in any suit unless the court is satisfied that at the time
when  the  loan  or  any  part  thereof,  to  which  the  suit  relates
was lent, the money-lender held a valid licence, and if the court
is satisfied that the money-lender did not hold a valid licence,
it shall dismiss the suit.

(2) Nothing  in  this  section  shall  affect  the  powers  of  a
Court  of  Wards,  or  an  Official  Assignee,  a  receiver,  an
administrator or a Court under the provisions of the Presidency
Towns  Insolvency  Act,  1909,  or  the  Provincial  Insolvency  Act,
1920 or any other law in force corresponding to that Act, or of
a liquidator under the Companies Act, 1956, or the Companies
Act, 2013, as the case may be, to realise the property of a money-
lender.

14.

(1) Any person may, during the validity of a licence,
file an application to the District Registrar for the cancellation
of the licence issued to a money-lender on the ground that such
money-lender  has  been  guilty  of  any  act  or  conduct  for  which
the District Registrar may under section 8, refuse him the grant
of a licence. At the time of filing his application, the said person
shall deposit such amount not exceeding 2[five hundred rupees],
as  the  District  Registrar  may  deem  fit.

(2) On  the  receipt  of  such  application  and  deposit  or  of  a
report  to  that  effect  from  an  officer  acting  under  section  16,
the District Registrar shall hold an inquiry and if he is satisfied
that  the  money-lender  has  been  guilty  of  such  act  or  conduct,
he  may  cancel  the  licence  of  the  money-lender  and  may  also
direct  the  return  of  the  deposit  made  under  sub-section  (1).

1 These  words  were  substituted  for  the  words  “ rupees  one  hundred,  whichever  is

more” by Mah. 23 of 2014, s.5.

2 These words were substituted for the letters and figures “ Rs. 100 ” by Mah. 23 of

2014, s.6.

3 of
1909.
5 of
1920.
1 of
1956.
18 of
2013.

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Maharashtra Money-Lending (Regulation) Act, 2014.

13

(3) If in the opinion of the District Registrar an application
made  under  sub-section  (1)  is  frivolous  or  vexatious,  he  may,
out of the deposit made under sub-section (1), direct to be paid
to  the  money-lender  such  amount  as  he  deems  fit  as
compensation.

15. For  the  purposes  of  sections  6  and  16,  the  Registrar
General,  Divisional  Registrar,  District  Registrar,  Assistant
Registrar  and  the  officer  authorized  under  section  16;  and  for
the  purposes  of  1[sections  14  and  18],  the  District  Registrar
shall have and may exercise the same powers as are vested in
a Civil Court under the Code of Civil Procedure, 1908, in respect
of  the  following  matters,  namely :—

Registrar
General
and  his
subordinates
to  have
powers  of
Civil  Court.

5 of
1908.

Power  of
authorized
officer  to
require
production
of  records
or
documents.

(a)  enforcing  the  attendance  of  any  person  and

examining him on oath ;

(b) compelling  the  production  of  documents  and

material  objects ;

(c) issuing  commissions  for  the  examination  of

witnesses ;  and

(d) proof  of  facts  by  affidavits.

16. For  the  purpose  of  verifying,  whether  the  business
of  money-lending  is  carried  on  in  accordance  with  the
provisions of this Act, Registrar General, Divisional Registrar,
District Registrar and Assistant Registrar or any other officer
authorized by the State Government in this behalf may require
any  money-lender  or  any  person  in  respect  of  whom  the
Registrar General, Divisional Registrar, District Registrar and
Assistant Registrar or the officer authorized by him, has reason
to believe that he is carrying on the business of money-lending
in  the  State,  to  produce  any  record  or  documents  in  his
possession  which  in  his  opinion  is  relevant  for  the  purpose
and thereupon such money-lender or person shall produce such
record  or  documents.  The  Registrar  General,  Divisional
Registrar, District Registrar and Assistant Registrar or officer
so  authorized  may,  after  reasonable  notice,  at  any  reasonable
time  enter  and  search  without  warrant  any  premises  where
he  believes  such  record  or  documents  to  be  kept  and  inspect
such record or documents and may ask any question necessary
for  interpreting  or  verifying  such  record.

1.  These  words  and  figures  were  substituted  for  the  word  and  figure  “section  14”

by Mah. 23 of 2014, s. 7.

H  4192—3

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Maharashtra Money-Lending (Regulation) Act, 2014.

[2014 : Mah. VIII

Disposal  of
property
pledged
with
money-
lender
carrying  on
business  of
money-
lending
without
valid
licence.

17.

(1) If  upon  the  inspection  of  record  and  documents
made  under  section  16,  the  inspecting  officer  is  satisfied  that
the  money-lender  is  in  possession  of  property  pledge  to  him
by a debtor as security for the loan advanced by money-lender
in the course of his business of money-lending without a valid
licence,  the  inspecting  officer  shall  require  the  money-lender
to  deliver  forthwith  the  possession  of  such  property  to  him.

(2) Upon  the  property  being  delivered  to  him,  the
inspecting  officer,  if  he  is  not  the  District  Registrar,  shall
entrust  it  to  the  District  Registrar  and  the  District  Registrar
(when  he  is  also  the  inspecting  officer)  shall  keep  it  in  his
custody  for  being  disposed  of  as  hereinafter  provided.

(3) On  delivery  of  the  property  under  sub-section  (1)  or
sub-section  (2),  the  District  Registrar  shall,  after  due
verification  and  identity  thereof,  return  it  to  the  debtor  who
has pledged it or, where the debtor is dead, to his known heirs.

(4) If the debtor or his known heirs cannot be traced, the
District  Registrar  shall,  within  ninety  days  from  the  date  of
taking  possession  of  the  property,  publish  a  notice  in  the
prescribed manner inviting claims thereto. If, before the expiry
of  the  said  period,  a  claim  is  received,  whether  in  answer  to
the  notice  or  otherwise,  he  shall  adjudicate  upon  and  decide
such claim. If the District Registrar is satisfied that any claim
is  valid,  he  shall  deliver  the  possession  of  the  property  to  the
person  claiming  it  on  his  giving  a  receipt  therefor;  and  such
delivery  of  the  property  to  the  person  claiming  it  shall
discharge  the  District  Registrar  of  his  liability  in  respect  of
such property against any other person. If the claim is refused,
the  property  shall  stand  forfeited  to  the  State  Government.

(5) Whether  the  possession  of  the  property  pledged  by  a
debtor  cannot,  for  any  reason  (including  identity  thereof)  be
delivered  to  him,  then  the  money-lender  to  whom  it  was
pledged shall be required to pay to the debtor or if he is dead,
to his known heir, the value of such property if such debtor or,
as the case may be, the heir claims the property. If the money-
lender fails to pay the value, it may be recoverable from him as
an arrear of land revenue; and on recovery of the value, it shall
be delivered to the debtor by whom such property was pledged
or, as the case may be, to the heir.

2014 : Mah. VIII]

Maharashtra Money-Lending (Regulation) Act, 2014.

15

Return  of
immovable
property
acquired  in
course  of
money-
lending.

(6) If  there  is  any  difference  of  opinion  between  the
money-lender and the debtor or, as the case may be, his heir
on  the  question  of  value  of  the  property  or  its  identity,  the
question  shall  be  referred  to  the  Divisional  Registrar  for
decision  and  his  decision  on  the  question  shall  be  final.

  (7) The  value  of  the  property  may  be  determined  with
the  assistance  of  the  services  of  an  expert  appointed  by  the
State Government in that behalf. The expert may be paid such
honoraria  as  the  State  Government  or  any  officer  not  below
the rank of Tahsildar appointed by it may, by an order in writing,
from time to time, in relation to any area or areas, determined.

18.

(1) If, on the basis of facts disclosed, during verification
under  section  16  or  inspection  under  section  17,  or  by  an
application  from  a  debtor  or  otherwise,  the  District  Registrar
has  reason  to  believe  that  any  immovable  property,  which
has  come  in  possession  of  the  money-lender  by  way  of  sale,
mortgage,  lease,  exchange  or  otherwise,  within  a  period  of
1[fifteen years] from the date of verification or the inspection
or  the  date  of  receipt  of  application  from  debtor,  in  the
nature  of  the  property  offered  by  the  debtor  to  the  money-
lender  as  a  security  for  loan  advanced  by  the  money-lender
in  course  of  money-lending,  the  District  Registrar  may,
himself  or  through  an  inquiry  officer,  to  be  appointed  for
the  purpose,  in  the  manner  prescribed,  hold  further  inquiry  into
the nature of the transaction.

(2) If upon holding the inquiry as per sub-section (1), the District
Registrar is satisfied that the immovable property came in possession
of  the  money-lender  as  a  security  for  loan  advanced  by  the
money-lender during the course of money-lending, the District
Registrar  may,  notwithstanding  anything  contained  in  any
other  law  for  the  time  being  in  force,  after  recording  the
reasons, declare the instrument or conveyance as invalid and
may  order  restoration  of  possession  of  the  property  to  the
debtor  who  has  executed  the  instrument  or  conveyance  as  a
security or to his heir or successor, as the case may be.

(3) Before passing an order or giving decision as per sub-
section  (2),  the  District  Registrar  shall  give  an  opportunity
to the person concerned to state his objections, if any, within
fifteen days from the date of receipt of notice by him and may
also  give  personal  hearing,  if  he  so  desires.

1.  These  words  were  substituted  for  the  words  “five  years”  by  Mah.  23  of  2014,  s.8.

H  4192—3a

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Maharashtra Money-Lending (Regulation) Act, 2014.

[2014 : Mah. VIII

(4) Any  person  aggrieved  by  the  order  or  decision  of  the
District  Registrar  under  sub-section  (2)  may,  within  one  month
from  the  date  of  order  or  decision,  appeal  to  the  Divisional
Registrar :

Provided  that,  the  Divisional  Registrar  may  admit  the
appeal after expiry of the period of one month, if the appellant
satisfies  him  that  he  had  sufficient  cause  for  not  preferring
the  appeal  within  the  period.

(5) The order passed by the Divisional Registrar in appeal

preferred  under  sub-section  (4)  shall  be  final.

(6) Subject  to  the  appeal  provided  under  sub-section  (4),
the  order  passed  or  decisions  given  by  the  District  Registrar
under sub-section (2), shall be sufficient conveyance and it shall
be  the  duty  of  every  officer  entrusted  with  the  work  relating
to  maintenance  of  land  records  under  the  Maharashtra  Land
Revenue Code, 1966, or under any other law for the time being
in  force,  to  give  effect  to  such  order  in  his  records.

Mah.
XLI  of
1966.

Court’s
power  to
cancel  or
suspend
licence.

19.

(1) (i) A Court passing an order of conviction against

a  money-lender  for  an  offence  under  this  Act,  or
(ii) a  Court  trying  a  suit,  if  satisfied  that  such  money-lender
has committed such contravention of the provisions of this Act
or  the  rules  as  would,  in  its  opinion,  make  him  unfit  to  carry
on  the  money-lending ,—

(a) may order that all the licences held by such money-
lender in the State be cancelled or suspended for such time
as it may think fit, and

(b) may, if it thinks fit, declare any such money-lender,
or  if  any  money-lender  is  an  undivided  Hindu  family,  a
company  or  an  unincorporated  body,  such  family,  company
or body and also any person responsible for the management
of the money-lending carried on by such family, company or
body, to be disqualified from holding any licence in the State,
for such time as the Court may think fit :

Provided  that,  where  any  licence  held  by  any  money-
lender  is  suspended  or  cancelled  or  any  money-lender  is
disqualified  from  holding  any  licence  under  this  section,  he
may appeal against such order to the Court to which an appeal
ordinarily lies from the decision of the Court passing the order,
and  the  Court  which  passed  the  order  or  the  Court  of  appeal
may,  if  it  thinks  fit,  pending  the  appeal,  stay  the  operation  of
the  order  under  this  section.

2014 : Mah. VIII]

Maharashtra Money-Lending (Regulation) Act, 2014.

17

(2) Where  a  Court  convicts  a  money-lender  of  an  offence
under  this  Act,  or  makes  an  order  or  declaration,  under
sub-clause (a) or (b) of clause (ii) of sub-section (1), it shall cause
the  particulars  of  the  conviction,  order  or  declaration,  as  the
case  may  be,  to  be  endorsed  on  all  the  licences  held  by  the
money-lender convicted or by any other person affected by the
order  or  declaration  and  shall  cause  copies  of  its  order  or
declaration  to  be  sent  to  the  District  Registrar  by  whom  the
licences  were  granted  for  the  purpose  of  entering  such
particulars  in  the  registers.

(3) Any  licence  required  by  a  Court  for  endorsement  in
accordance with sub-section (2) shall be produced by the person
by  whom  it  is  held  in  such  manner  and  within  such  time  as
may  be  directed  by  the  Court  and  any  person  who,  without
reasonable  cause,  makes  default  in  producing  the  licence  so
required  shall  be  liable,  on  conviction,  to  a  fine  not  exceeding
rupees one thousand for each day for the period during which
the  default  continues.

(4) Powers  conferred  on  a  Court  under  this  section  may

be  exercised  by  any  Court  in  appeal  or  in  revision.

20. Where  any  licence  is  suspended  or  cancelled  under
this  Act,  no  person  shall  be  entitled  to  any  compensation  or
the  refund  of  any  licence  fee  or  inspection  fee.

21. A  person  whose  licence  has  been  suspended  or
cancelled  in  accordance  with  the  provisions  of  this  Act  shall,
during  the  period  of  suspension  or  cancellation,  as  the  case
may  be,  be  disqualified  for  carrying  on  business  of  money-
lending  in  the  State.

22. No  person  whose  licence  has  been  endorsed  under
section 19 or who has been disqualified from holding a licence
shall apply for, or be eligible to hold, a licence, without giving
particulars  of  such  endorsement  or  disqualification.

No  compen-
sation  for
suspension  or
cancellation of
licence.

Persons
debarred
from  doing
money-
lending
during  period
of  suspension
or
cancellation
of  licence.

Person
whose  licence
is  suspended
or  cancelled
not to apply
without
giving
particulars  of
endorsement
or  of
disqualification.

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Maharashtra Money-Lending (Regulation) Act, 2014.

[2014 : Mah. VIII

Promissory
note,  Bond,
etc.,  to  be
factual.

Duty  of
money-
lender  to
keep
accounts
and  furnish
copies.

23. No  money-lender  shall  take  any  promissory  note,
acknowledgment,  bond  or  other  writing  which  does  not  state
the  1[actual  amount  of  the  loan  and  rate  of  interest]  or  which
states such amount wrongly or execute any instrument in which
blanks are left to be filled in after execution, without mentioning
the date and amount of loan.

24.

(1) Every  money-lender  shall  keep  and  maintain  a
cash book and a ledger in such form and in such manner as may
be  prescribed.

(2) Every  money-lender  shall,—

(a) deliver  or  cause  to  be  delivered,—

(i) to the debtor within thirty days from the date
on which a loan is made, a statement in any recognized
language  showing  in  clear  and  distinct  terms  the
amount and date of the loan and of its maturity, the
nature  of  the  security,  if  any,  for  the  loan,  the  name
and  address  of  the  debtor  and  of  the  money-lender
and  the  rate  of  interest  charged:

Provided that, no such statement shall be required to
be  delivered  to  a  debtor,  if  he  is  supplied  by  the  money-
lender with a pass book which shall be in the prescribed
form  and  shall  contain  an  up  to  date  account  of  the
transactions with the debtor ;

(ii) to the Assistant Registrar within the said period
a  statement  containing  the  particulars  referred  to  in
sub-clause (i);

(b) upon repayment of the loan in full, mark indelibly
every  paper  signed  by  the  debtor  with  words  indicating
payment  or  cancellation,  and  discharge  every  mortgage,
restore  every  pledge,  return  every  note  and  cancel  or
reassign  every  assignment  given  by  the  debtor  as  security
for the loan.

(3) Notwithstanding  anything  contained  in  sub-clause  (ii)  of
clause (a) of sub-section (2), the State Government may, by an order
in writing, permit such class of money-lenders as may be specified in
the order to deliver or cause to be delivered to the Assistant Registrar
a statement containing the particulars referred to in sub-clause  (i)
of clause (a) of sub-section (2) in respect of all loans made during
every such period as may be specified in the order, and upon the
issue of such order a money-lender electing to deliver a periodical
statement as provided in this sub-section, shall deliver or cause to be
delivered the same within a period of thirty days from the date of expiry
of every such period.

1. These words were substituted for the words “actual amount of the loan” by Mah. 23

of 2014, s.9.

2014 : Mah. VIII]

Maharashtra Money-Lending (Regulation) Act, 2014.

19

(4) No  money-lender  shall  receive  any  payment  from  a
debtor  on  account  of  any  loan  without  giving  him  a  plain  and
complete  receipt  for  such  payment.

(5) No money-lender shall accept from a debtor any article
as  a  pawn,  pledge  or  security  for  a  loan  without  giving  him  a
plain signed receipt for the same with its description, estimated
value,  the  amount  of  loan  advanced  against  it  and  such  other
particulars  as  may  be  prescribed.  The  money-lender  shall
maintain the duplicates of such receipts in a separate register.

25.

(1) Every  money-lender  shall  deliver  or  cause  to  be
delivered every year to each of his debtors a legible statement
of such debtor’s account signed by the money-lender or his agent
of  any  account  that  may  be  outstanding  against  such  debtor.
The  statement  shall  show,—

Dilivery  of
statements
of  accounts
and  copies
thereof  by
money-
lenders.

(i) the  amount  of  principal,  the  amount  of  interest
and  the  amount  of  fees  referred  to  in  section  26,
separately,  due  to  the  money-lender  at  the  beginning  of
the year ;

(ii)  the  total  amount  of  loans  advanced  during  the

year ;

(iii) the  total  amount  of  repayments  received  during

the year ; and

(iv) the amounts of principal and interest due at the

end  of  the  year.

The  statement  shall  be  signed  by  the  money-lender
or his agent, and shall be in any recognized language. It
shall be in such form and shall be supplied to the debtor
on  or  before  such  date  as  may  be  prescribed :

Provided  that,  no  such  statement  shall  be  required
to be delivered to a debtor if he is supplied by the money-
lender with a pass book which shall be in the prescribed
form  and  shall  contain  an  up  to  date  account  of  the
transactions  with  the  debtor.

The  money-lender  shall  on  or  before  the  aforesaid
date  deliver  or  cause  to  be  delivered  a  statement
containing  the  particulars  specified  in  clauses  (i)  to  (iv)
to  the  Assistant  Registrar.

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Maharashtra Money-Lending (Regulation) Act, 2014.

[2014 : Mah. VIII

(2) In  respect  of  any  particular  loan,  the  money-lender
shall, on demand in writing being made by the debtor at any
time  during  the  period  when  the  loan  or  any  part  thereof
has  not  been  repaid,  and  on  payment  of  the  prescribed  fee
supply  to  the  debtor,  or  if  the  debtor  so  requires  to  any
person  specified  in  that  behalf  in  the  demand,  a  statement,
in  any  recognized  language,  signed  by  the  money-lender  or
his  agent,  and  containing  the  relevant  particulars  specified
in  sub-section  (1)  within  fifteen  days  from  the  date  of
application  by  the  debtor.

(3) A  money-lender  shall,  on  demand  in  writing  by  the
debtor, and tender of the prescribed sum of expenses, supply
a  copy  of  any  document  relating  to  a  loan  made  by  him  or
any  security  therefor  to  the  debtor,  or  if  the  debtor  so
requires  to  any  person  specified  in  that  behalf  in  the
demand.

(4) For  the  purpose  of  this  section,  “ year ”  means  the
year  for  which  the  accounts  of  the  money-lender  are
ordinarily  maintained  in  his  own  books.

Fees  for
certain
statements
supplied to
debtors  and
Assistant
Registrar.

26.

(1) A money-lender may recover from a debtor fees
for  the  pass  book  supplied  to  him  under  sub-section  (2)  of
section  24  or  in  respect  of  copies  of  statements  supplied  to
him  under  sub-section  (3)  of  section  24  or  statement  of
accounts supplied to him under sub-section (1) of section 25
and  in  respect  of  copies  of  such  statements  supplied  to  the
Assistant  Registrar  under  the  said  sub-section.

(2) Such  fees  shall  be  recoverable  at  such  rates  and  in
such manner as may be prescribed, subject to the maximum
of two rupees per debtor, per year irrespective of the number
of  statements  or  copies  thereof  supplied  to  the  debtor  or
the  Assistant  Registrar  during  the  relevant  year.

Debtor  not
bound  to
admit
correctness
of  accounts.

27. A  debtor  to  whom  a  pass  book  has  been  furnished
under  section  24  or  a  statement  of  accounts  has  been
furnished  under  section  25,  shall  not  be  bound  to
acknowledge or deny its correctness and his failure to do so
shall  not,  by  itself,  be  deemed  to  be  admission  of  the
correctness  of  the  accounts.

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Maharashtra Money-Lending (Regulation) Act, 2014.

21

Procedure
of  Court  in
suit
regarding
loans.

28. Notwithstanding  anything  contained  in  any  law  for  the
time being in force, in any suit to which this Act applies, filed by a
money-lender  against  a  debtor,—

(a)  a  Court  shall  before  deciding  the  claim  on  merits,
frame  and  decide  the  issues  whether  the  money-lender  has
complied with the provisions of sections 24 and 25 ;

(b) if the Court finds, that the provisions of section 24 or
section 25 have not been complied with by the money-lender,
it  may,  if  the  plaintiffs’  claim  is  established,  in  whole  or  in
part,  disallow  the  whole  or  any  portion  of  the  interest  found
due, as may seem reasonable to it in the circumstances of the
case and may disallow costs.

Explanation.—A money-lender who has given the receipt
or  furnished  a  statement  of  accounts  or  a  pass  book  in  the
prescribed  form  and  manner,  shall  be  held  to  have  complied
with the provisions of section 24 or section 25, as the case may
be, in spite of any errors and omissions, if the Court finds that
such  errors  and  omissions  are  not  material  or  not  made
fraudulently.

29. Notwithstanding anything contained in any agreement
or any law for the time being in force, no Court shall, in respect of
any loan whether advanced before or after the date on which this
Act comes into force, decree, on account of interest, a sum greater
than the principal of the loan due on the date of the decree.

5 of
1908.

30. Notwithstanding anything contained in the Code of Civil
Procedure, 1908, the Court may at any time, on application of a
judgment  debtor,  after  notice  to  the  decree  holder,  direct  that
the amount of any decree passed against him, whether before or
after the date on which this Act comes into force, in respect of a
loan, shall be paid in such number of installments and subject to
such conditions, and payable on such dates, as, having regard to
the circumstances of the judgment debtor and the amount of the
decree,  it  considers  fit.

Power  of
Court  to
limit
interest
recoverable
in  certain
cases.

Power  of
Court  to
direct
payment  of
decretel
amount  by
installment.

31.

(1)  The  State  Government  may,  from  time  to  time,  by
notification  in  the  Official  Gazette,  fix  the  maximum  rates  of
interest  to  be  charged  by  a  money-lender  in  respect  of  secured
loan and unsecured loan :

Limitation
on  rates  of
interest.

1[Provided that, in the Scheduled Areas, the rates of interest
to be charged by a money-lender shall be fixed by the Gram Sabha,
which shall not be more than the maximum rates of interest fixed
by  the  Government  under  this  sub-section.]

1. This proviso was added by Mah. 23 of 2014, s.10.

H  4192—4

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[2014 : Mah. VIII

(2)  No  money-lender  shall  receive  from  a  debtor  or  intending
debtor any sum by way of compound interest on a loan advanced or
intended  to  be  advanced  or  any  sum  by  way  of  interest  at  a  rate
higher than the rate fixed under sub-section (1).

(3)  Notwithstanding  anything  contained  in  any  other  law  for
the time being in force, a money-lender shall not charge or recover
from any debtor, on account of interest, a sum greater than the amount
of principal of loan whether advanced before or after commencement
of this Act.

(4)  Notwithstanding  anything  contained  in  any  other  law  for
the time being in force, no agreement between a money-lender and a
debtor for payment of interest at rates exceeding the maximum rates
fixed by the State Government under sub-section (1) and no agreement
in contravention of the provisions of sub-sections (2) and (3) shall be
valid.

Prohibition
of  charge
for
expenses  on
loans  by
money-
lenders.

32.

(1) No money-lender shall receive from a debtor or intending
debtor any sum other than reasonable costs of investigating title to the
property, costs of stamp, registration of documents, and other usual out
of pocket expenses in cases where an agreement between the parties
includes a stipulation that property is to be given as security or by way of
mortgage and where both parties have agreed in writing to such costs
and reimbursement thereof or where such cost, charges or expenses are
leviable under the provisions of the Transfer of Property Act, 1882, or
any other law for the time being in force.

4 of
1882.

Assignment
of  loans.

(2)  Any  sum  received  by  a  money-lender  in  contravention  of
sub-section (1) from a debtor or intending debtor on account of costs,
charges  or  expenses  referred  to  in  that  sub-section  shall  be
recoverable from the money-lender as debt due from him to the debtor
or, as the case may be, intending debtor, or shall be liable to be set off
against the loan actually lent to the debtor or intending debtor.

33.

(1) Whether a loan advanced, whether before or after the
date on which this Act comes into force, or any interest of such loan
or the benefit of any agreement made or security taken in respect of
such  loan  or  interest  is  assigned  to  any  assignee,  the  assignor
(whether  he  is  the  money-lender  by  whom  the  money  was  lent  or
any  person  to  whom  the  debt  has  been  previously  assigned)  shall,
before the assignment is made,—

(a) give the assignee a notice in writing that the loan, interest,

agreement or security is affected by the operation of this Act ;

2014 : Mah. VIII]

Maharashtra Money-Lending (Regulation) Act, 2014.

23

(b)  supply  to  the  assignee  all  information  necessary  to

enable him to comply with the provisions of this Act; and

(c)  give  the  debtor  notice  in  writing  of  the  assignment

supplying the name and address of the assignee.

(2)  Any  person  acting  in  contravention  of  the  provisions  of
sub-section (1), shall be liable to indemnify any other person who
is  prejudiced  by  such  contravention.

34.

(1) Save as hereinafter provided, where any debt due to a
money-lender in respect of money lent by him, whether before or after
the date on which this Act comes into force, or of interest on money so
lent or of the benefit of any agreement made or security taken in respect
of any such debt or interest, has been assigned, the assignee shall be
deemed to be the money-lender and all the provisions of this Act shall
apply to such assignee as if he was the money-lender.

(2) Notwithstanding anything contained in this Act or in any other
law for the time being in force, where for any reason any such assignment
is invalid and the debtor has made any payment of money or transfer of
property on account of any loan which has been so assigned, the assignee
shall in respect of such payment or transfer be deemed to be the agent of
the money-lender for all the purposes of this Act.

Application
of  Act  as
to
assignees.

35. Notwithstanding anything contained in any law for the time
being in force, the Court shall, in any suit to which this Act applies,
between the money-lender and the debtor, whether heard ex-parte  or
otherwise,—

Re-opening
of
transactions.

(a)  re-open  any  transaction,  or  any  account  already  taken

between the parties ;

(b) take an account between the parties ;

(c)  reduce  the  amount  charged  to  the  debtor  in  respect  of

any  excessive  interest ;

(d) if on taking accounts it is found that the money-lender
has received more than what is due to him, pass a decree in favour
of the debtor in respect of such amount :

Provided  that,  in  the  exercise  of  these  powers,  the  Court

shall not,—

(i)  re-open  any  adjustment  or  agreement
purporting to close previous dealings and to create new
obligations which have been entered into by the parties
or any person through whom they claim at a date more
than  six  years  from  the  date  of  the  suit  to  which  this
Act  applies ;

(G.C.P.) H 4192—5 (2542—5-2015)

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Maharashtra Money-Lending (Regulation) Act, 2014.

[2014 : Mah. VIII

(ii)  do  anything  which  affects  any  decree  of  a

Court.

Explanation.—For  the  purposes  of  this  section,
“excessive  interest”  means  interest  at  a  rate  which
contravenes  any  of  the  provisions  of  section  31.

Inquiry  for
taking
accounts
and
declaring
amount
due.

36.

(1) Any debtor may make an application at any time
to Court, whether the loan has or has not become payable, for
taking  accounts  and  for  declaring  the  amount  due  to  the
money-lender.  Such  application  shall  be  in  the  prescribed
form  and  accompanied  by  the  prescribed  fee.

Deposit  in
Court  of
money  due
to  money-
lenders.

(2)  On  receipt  of  such  application,  the  Court  shall  cause

a  notice  of  the  application  to  be  given  to  the  money-lender.

(3) On the date fixed for the hearing of the application or
on  such  date  to  which  the  hearing  may  be  adjourned,  from
time to time, the Court shall make an inquiry and shall, after
taking  any  account  of  the  transactions  between  the  parties,
pass  an  order  declaring  the  amount,  if  any,  still  payable  by
the  debtor  to  the  money-lender,  in  respect  of  the  principal
and  interest,  if  any.  In  taking  accounts  under  this  section,
the Court shall follow the provisions of sections 24 to 35 and
section  38.

37.

(1)  A  debtor  may  at  any  time  tender  to  a  money-
lender  any  sum  of  money  due  from  him  to  the  money-lender
in  respect  of  a  loan  by  way  of  principal,  interest  or  both.

(2)  If  the  money-lender  refuses  to  accept  any  sum  so
tendered,  the  debtor  may  deposit  the  said  sum  in  Court  to
the  account  of  the  money-lender.

(3) The Court shall thereupon cause written notice of the
deposit  to  be  served  on  the  money-lender,  and  he  may,  on
presenting  a  petition  stating  the  sum  then  due  in  respect  of
the  loan,  and  his  willingness  to  accept  the  said  sum,  receive
and appropriate it first towards the interest and the residue,
if  any,  towards  the  principal.

(4) When the money-lender does not accept the sum, the
Court  shall  appropriate  the  said  sum  first  towards  the
interest  and  the  residue,  if  any,  towards  the  principal.

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Maharashtra Money-Lending (Regulation) Act, 2014.

25

38. Notwithstanding  any  agreement  between  the  parties  or
any law for the time being in force, when pass book is supplied under
section 24 or the statement is delivered to the debtor under section
25 or if the accounts are taken under section 36 or a tender is made
by debtor to a money-lender in respect of a loan under section 37 on
any day of the calendar month, the interest due shall be calculated
as payable upto the actual date of repayment irrespective of the fact
that  such  statement  is  delivered  or  pass  book  is  supplied  or  such
accounts are taken on any day of the calendar month.

39. Whoever carries on the business of money-lending without
obtaining  a  valid  licence,  shall,  on  conviction,  be  punished  with
imprisonment of either description for a term which may extend to
five years or with fine which may extend to fifty thousand rupees or
with both.

40. Whoever in an application for grant of licence or renewal
of licence, or in any document required by, or for the purpose of, any
of  the  provisions  of  this  Act  willfully  makes  a  statement  in  any
material  particulars  knowing  it  to  be  false,  shall,  on  conviction,
be  punished  with  imprisonment  of  either  description  for  a  term
which  may  extend  to  two  years  or  with  fine  which  may  extend  to
twenty-five thousand rupees or with both.

Calculation
of  interest.

Penalty  for
doing
money-
lending
without
valid
licence.

Penalty  for
making
false
statement.

Obtaining
licence  under
fictitious
name,  carrying
on  money-
lending at a
place  not
mentioned  in
licence,  etc.

41. Whoever,—

(a)  obtains  a  licence  in  the  name  which  is  not  his  true
name or carries on the business of money-lending under the
licence  so  obtained ;  or

(b) carries on the business of money-lending at any place
not mentioned in the licence authorizing him to carry on such
business ; or

(c) enters into any agreement in the course of business of
money-lending  without  a  valid  licence,  or  under  a  licence
obtained  in  the  name  which  is  not  his  true  name,  shall,  on
conviction,  be  punished,—

(i) for  the  first  offence,  with  imprisonment  of  either
description which may extend to one year or with fine which
may extend to rupees fifteen thousand or with both, and

(ii) for the second and subsequent offence, in addition
to  or  in  lieu  of,  the  penalty  specified  in  clause  (i),  with
imprisonment of either description which shall not be less
than five years, where such person is not a company, and
with fine which shall not be less than rupees fifty thousand,
where such person is a company.

H  4192—5a

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Maharashtra Money-Lending (Regulation) Act, 2014.

[2014 : Mah. VIII

Penalty  for
wrong  entry
in  promissory
note,  Bond
etc.

42. Whoever contravenes the provisions of section 23 shall,
on conviction, be punished with fine which may extend to twenty-
five  thousand  rupees  or  with  imprisonment  of  either  description
which may extend to three years or with both.

Penalty  for
contravention
of  section
24 or 25.

Penalty  for
charging  rate
of  interest  in
contravention
of  section  31.

Penalty  for
molestation.

43. Whoever contravenes the provisions of section 24 or 25
shall,  on  conviction,  be  punished  with  fine  which  may  extend  to
twenty-five  thousand  rupees.

44. Whoever  charges  or  recovers  interest  in  contravention
of  section  31,  shall,  on  conviction,  be  punished  with  fine  which
may  extend  to  twenty-five  thousand  rupees,  if  it  is  first  offence
and  with  fine  up  to  fifty  thousand  rupees,  for  the  second  or
subsequent  offence.

45. Whoever molests, or abets the molestation, of a debtor
for  the  recovery  of  a  debt  due  by  him  to  money-lender  shall,  on
conviction,  be  punished  with  imprisonment  of  either  description
which may extend to two years or with fine which may extend to
five  thousand  rupees,  or  with  both :

1[Provided that, a person who goes to such house or place in
order  merely  to  obtain  or  communicate  information  shall  not  be
deemed  to  have  molested  for  the  purposes  of  this  section.]

Explanation.—For the purposes of this section, a person who,
with intent to cause another person to abstain from doing any act
which he has a right to do or to do any act which he has a right to
abstain  from  doing,—

(a) obstructs  or  uses  violence  to  or  intimidates  such  other

person,  or

(b) persistently follows such other person from place to place
or interferes with any property owned, or used by him or deprives
him of, or hinders him in, the use thereof, or

(c) loiters near a house or other place where such other person
resides  or  works,  or  carries  on  business,  or  happens  to  be,  or  does
any  act  calculated  to  annoy  or  intimidate  such  other  person,  shall
be  deemed  to  molest  such  other  person.

General
provisions
regarding
penalties.

46. Whoever  fails  to  comply  with  or  acts  in  contravention
of any provision of this Act, shall, if no specific penalty has been
provided for in this Act, be punishable,—

(a)  for  the  first  offence  with  imprisonment  of  either
description  which  may  extend  to  one  year  or  with  fine  which
may extend to twenty-five thousand rupees, or with both ; and

 1. This proviso was added by Mah. 23 of 2014, s. 11.

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Maharashtra Money-Lending (Regulation) Act, 2014.

27

(b)  for  the  second  or  subsequent  offence,  with
imprisonment  of  either  description  which  may  extend  to
two years or with fine which may extend to ten thousand
rupees,  or  with  both.

47.

If  the  person  contravening  any  of  the  provisions  of
this  Act  is  an  undivided  Hindu  family  or  a  company  or  an
unincorporated  body,  the  person  responsible  for  the
management of the business of such family, company or body
shall  be  deemed  to  be  guilty  of  such  contravention.

Offences  by
corporations,
etc.

2 of
1974.

48. Notwithstanding  anything  contained  in  the  Code

of  Criminal  Procedure,  1973,  offence  punishable  under,—

(a)  sections  39  and  41,  for  contravening  provisions

Certain
offences  to
be
cognizable.

of  section  4,  and

(b) section 42, for contravening provisions of section

23, and

(c)  section  45,  for  molestation,
shall  be  cognizable.

49. Notwithstanding  anything  contained  in  any  other
law for the time being in force, no debtor who cultivates land
personally and whose debts does not exceed fifteen thousand
rupees  shall  be  arrested  or  imprisoned  in  execution  of  a
decree  for  money  passed  in  favour  of  a  money-lender,
whether  before  or  after  the  date  on  which  this  Act  comes
into  force.

No  arrest
and
imprisonment
in  execution
of  decree
for  money
against
agricultural
debtors.

Explanation.—The  expression  “ to  cultivate  personally ”
shall have the meaning assigned to it in clause (6) of section
2  of  the  Maharashtra  Tenancy  and  Agricultural  Lands  Act
or  any  corresponding  Act.

50. Every  officer  of  the  Government  acting  under  the
provisions of this Act shall be deemed to be a public servant
within the meaning of section 21 of the Indian Penal Code.

Every  officer
to be a public
servant.

LXVII
of
1948.

45 of
1860.

51. No  suit,  prosecution  or  other  legal  proceedings
shall lie against the Registrar General, or any authority for
anything  done  or  purported  to  have  been  done  in  good  faith
in pursuance of the provisions of this Act or the rules made
thereunder.

Protection
of  action
taken  in
good  faith.

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Maharashtra Money-Lending (Regulation) Act, 2014.

[2014 : Mah. VIII

Provisions
of  XXVIII  of
1947  saved.

Power  of
State
Government
to  delegate
its  powers.

Rules.

XXVIII
of
1947.

52. Nothing in this Act shall affect any of the provisions
of  the  Maharashtra  Agricultural  Debtors  Relief  Act  or  of  any
other law relating to relief of agricultural indebtedness in force
corresponding  to  that  Act,  and  no  Court  shall  entertain  or
proceed  under  this  Act  with  any  suit  or  proceedings  relating
to  any  loan  in  respect  of  which  debt  adjustment  proceedings
can  be  taken  under  the  said  Act,  or,  as  the  case  may  be,  the
said  law.

53. The  State  Government  may,  by  notification  in  the
Official Gazette, delegate to any officer any of the powers conferred
on it by or under this Act.

54.

(1) The State Government may, by notification in the
Official  Gazette,  make  rules  for  carrying  out  the  purposes  of
this  Act.

(2)  In  particular  and  without  prejudice  to  the  generality  of
the foregoing provisions, such rules may provide for all or any of
the  following  matters  :—

(a) the form of the application for a licence, the further
particulars to be included therein and the amount of and the
manner for payment of licence fee under section 5 ;

(b) the form and conditions of the licence under section 6 ;
(c) the form of the register under section 7 ;
(d) the manner of publishing a notice under sub-section
(4) of section 17 for inviting claims to property pledged with
a  money-lender ;

(e)  the  form  of  cash  book  and  ledger  and  the  manner  in
which they should be maintained under sub-section (1), the form
of passbook to be furnished under sub-section (2) and the other
particulars to be prescribed under sub-section (5) of section 24 ;
(f)  the  form  of  the  statement  of  accounts  under  sub-
section (1), the sum of expenses to be paid under sub-section
(3) of section 25 ;

(g) the fees to be paid under sub-section (2) of section 26 ;
(h) the form of application and the fee to be paid under

sub-section (1) of section 36 ;

(i) any other matter which is or may be prescribed under
this  Act  or  any  matter  for  which  there  is  no  provision  or
insufficient provision in this Act and for which provision is,
in the opinion of the State Government, necessary for giving
effect to the provisions of this Act ;

2014 : Mah. VIII]

Maharashtra Money-Lending (Regulation) Act, 2014.

29

(j) a provision that the contravention of any of the rules
shall  be  an  offence  and  shall  be  punishable  with  fine  not
exceeding such amount as may be prescribed.

(3) Every rule made under this Act shall be laid, as soon as
may be, after it is made, before each House of the State Legislature
while it is in session for a total period of thirty days, which may
be comprised in one session or in two or more successive sessions,
and if, before the expiry of the session in which it is so laid or the
session immediately following, both Houses agree in making any
modification in the rule or both Houses agree that the rule should
not be made, and notify their decision to that effect in the Official
Gazette, the rule shall, from the date of publication of such decision
in the  Official Gazette, have effect only in such modified form or
be  of  no  effect,  as  the  case  may  be,  so,  however,  that  any  such
modification  or  annulment  shall  be  without  prejudice  to  the
validity of anything previously done or omitted to be done under
that  rule.

55.

(1) If any difficulty arises in giving effect to the provisions
of  this  Act,  the  State  Government  may,  as  occasion  arises,  by  an
order published in the Official Gazette, do anything not inconsistent
with the provisions of this Act, which appears to it to be necessary or
expedient  for  the  purpose  of  removing  the  difficulty :

Provided that, no such order shall be made after expiry of a

period of two years from the date of commencement of this Act.

(2) Every order made under this section shall be laid, as soon
as  may  be  after  it  is  made,  before  each  House  of  the  State
Legislature.

56.

(1) The  Bombay  Money-Lenders  Act,  1946,  is  hereby

repealed.

(2) Notwithstanding such repeal, anything done or any action
taken  under  the  said  Act  (including  any  licence  issued)  shall  be
deemed to have been done, taken or issued, as the case may be,
under this Act.

57.

(1) The  Maharashtra  Money-Lending  (Regulation)

Ordinance,  2014,  is  hereby  repealed.

(2) Notwithstanding  such  repeal,  anything  done  or  any
action  taken  under  the  said  Ordinance  (including  any  licence
issued)  shall  be  deemed  to  have  been  done,  taken  or  issued,  as
the case may be, under this Act.

Bom.
XXXI
of
1947.

Mah.
Ord.  I
of
2014.

Power  to
remove
difficulty.

Repeal  of
Bom.  XXXI
of 1949 and
saving.

Repeal  of
Mah. Ord. I
of 2014 and
saving.

GOVERNMENT CENTRAL PRESS, MUMBAI

Maharashtra Government Publication
can be obtained from—

THE  DIRECTOR
GOVERNMENT PRINTING, STATIONERY AND PUBLICATION
MAHARASHTRA  STATE
Netaji Subhash Road,
MUMBAI 400 004.

Phone : 022 - 23632693, 23630695,
23631148, 23634049

THE MANAGER
GOVERNMENT PHOTOZINCO PRESS AND BOOK DEPOT
Photozinco Press Area, Near G.P.O.,
PUNE 411 001.

Phone : 020 - 26125808, 26124759

THE MANAGER
GOVERNMENT PRESS AND BOOK DEPOT
Civil Lines,
NAGPUR 440 001.

Phone : 0712 - 2562615

THE ASSTT. DIRECTOR
GOVERNMENT STATIONERY, STORE AND BOOK DEPOT
Shaha Ganj, Near Gandhi Chowk,
AURANGABAD 431 001.

Phone : 0240 - 2331468, 2331525

THE MANAGER
GOVERNMENT PRESS AND STATIONERY STORE
Tarabai Park,
KOLHAPUR 416 003.

Phone : 0231-2650395, 2650402

AND THE RECOGNISED BOOKSELLERS

